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1st Class Bailiffs Articles

COMMERCIAL RENT ARREARS RECOVERY “CRAR”

January 12, 2010

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The Landlords right to distrain against their tenant for rent arrears has been abolished. It has been replaced by a new procedure although this has not yet come into action yet. The procedure will come under the banner of Tribunals, Courts and Enforcement Act 2007 and is called Commercial Rent Arrears Recovery “CRAR”. This broadly follows similar rules to Distress for Rent but there are a few differences as follows

1/ CRAR can only be used for the collection of Rent not electric, Insurance or Service charges.

2/ Certificated Bailiffs will be Certificated in a similar manner to the present procedure but will be known as “Certificated Enforcement Officers”

3/ Prior to the Commencement of CRAR a Notice of Enforcement must be served on the debtor by the Enforcement Officer

4/ CRAR can only be used if the balance is above a minimum level

5/ Only a Certificated Enforcement Officer can take control of goods and even then only goods belonging to the debtor

6/ The Certificated Enforcement Officer may not take control of goods which exceed the value of the debt plus costs

7/ New rules will be brought in with regard to fees and the way that goods are dealt with and sold

8/ Statutory damages will be allowed to be claimed if the debtor moves goods that have been seized or if the Certificated Enforcement Officer breaches any rules.

9/ An upfront fee (yet to be determined) may have to be paid to the Certificated Enforcement Officer before the debtor is visited

National Enforcement have been delivierng a series of training seminars to clients and other organisations about these new laws and the effects upon the collection and recovery process.

We have provided courses for Local Authorities arouind the country. We have also done seminars for surveyors and solcitors in Leeds, Newcastle, Darlington and for Northumbria University.

We will provide more details in a future article

Categories: Commercial Rent Recovery — NES @ 8:46 am

Bailiffs view on Unauthorised Sub Letting

September 30, 2009

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As one of the leading Rent Recovery UK Bailiff companies. We are often asked our opinion where the landlord rents out property to Tenant “A” who without the consent of their landlord and contrary to the lease then lets the property to a sub tenant now Tenant “B”. The rent becomes due and is not paid the tenant has no goods in the property what can be done???????????

 

 

 

A/ Distrain

We can distrain on any goods no matter who they belong to at the property subject to statutory exemptions, protected goods and exclusions under DRAA  1908. However an unlawful occupations is usually treated as not excluded under the above act therefore we can distrain against Tenant “B” goods

 

B/ Forfeiture of Lease

 

Our bailiffs can go in an take possession of the property subject to the forfeiture clause contained in the lease for as breach.

 

C/ Statutory Demand

We can draw up a statutory demand under the Insolvency Act 1986 (Part of the bankruptcy procedure) and serve this upon Tenant “A” to get them to pay

 

D/ Section 6 Notice

 

We can serve a notice under Section 6 of DRAA which will force Tenant “B” to pay future and accrued rent to the superior landlord

 

E/ Issue A claim form

 

You can issue a claim in the County or High Court depending on the figures to get your money back.

 

F/ Chase the Guarantor

 

If you can not get the money by the above methods and you have a guarantor you can then pursue the guarantor

 

 

 

 

 

 

Categories: Commercial Rent Recovery — admin @ 8:40 am

Bailiffs report rise in illegal sub-lets

September 29, 2009

National Enforcement Services, one of the UK’s leading bailiff and private investigation services, is reporting a rise in the number of properties being unlawfully sub-let.

The bailiff and debt collection firm, which is based in Manchester, has seen an increase in commercial property tenants letting out a facility to another party against the conditions set out in their tenancy agreement.

A property may only be sub-let under the terms of the lease if the landlord has given express permission in writing. However many commercial tenants are flouting the agreed terms of their contract.

In a situation where a property is being sublet, the landlord becomes the head landlord and the tenant becomes a mesne tenant.

However, if the individual who is inside the premises at the time of the debt collection is not the tenant, then it is the responsibility of the landlord to evict them.

National Enforcement Services carries out a range of actions, which also include carrying out evictions as well as collection of monies owed.

Andy Coates, CEO of National Enforcement Services , said: “It is concerning that so many properties we see are not being run or operated by the tenant under the terms of the original lease.

He added, “The landlord must be aware of who is letting their premises at all times and be aware it is their responsibility to evict a tenant if that tenant is flouting the sub-letting clause of their agreements.”

Categories: Commercial Rent Recovery — NES @ 8:43 am

Illegal Sub Tenants

July 21, 2009

My tenant has none paid his rent and has sub let the property without my position to another so none of the goods in the property belong to my tenant what can I do ?

 

There are a number of options available

 

1/ Get one of our bailiffs to Serve the Sub tenant with a Section 6 Notice which will require the sub tenant to make all future payments of rent direct to you.

 

2/ Get one of our bailiffs to Take possession of the property from the sub tenant via a forfeiture clause in your lease

 

3/ Issue proceeding in the County or High court against the tenant

 

4/ Get us to issue a statutory demand under the Insolvency Act against the tenant and then get one of our bailiffs to serve it

 

NES

Categories: Commercial Rent Recovery — NES @ 3:57 pm